A

PROJECT REPORT
ON

IMPACT OF DIGITALIZATION IN COOPRATIVE

BANK
In fulfillment of the requirements for
Master Of Business Administration (MBA)
(2015-2017)

UNDER THE GUIDANCE OF:

Miss. Ivreet Kapur (Assistant Professor)
SUBMITTED TO:
SUBMITTED BY:
Prof: Ivreet Kapur

Namita
Bala
R.N
O:1504630

CT GROUP OF INSTITUTION (SHAHPUR CAMPUS)

DECLARATION
I hereby declare that the Project report titled IMPACT OF DIGITALIZATION IN
COOPERATIVE
BANK is my original work and has not been published or submitted for any
degree, diploma or other similar titles elsewhere. This has been undertaken for the
purpose of partial fulfillment of Post Graduate Master of business Administration (MBA) at CT
Institute of Management.

Date:
Namita
Roll No:-1504630

ACKNOWLEDGMENT
It is really a matter of pleasure for me to get an opportunity to thank all the persons
who contributed directly or indirectly for the successful completion of the project
report, Impact Of Digitalization In Cooperative bank. First of all I am extremely
thankful to my college CT Group Of Institution for providing me with this
opportunity and for all its cooperation and contribution. I also express my gratitude
to my Project mentor and guide Prof. Miss. Ivreet Kapur. I am highly thankful to our
respected project guide for giving me the encouragement and freedom to conduct
my project. I am also grateful to all my faculty members for their valuable guidance
and suggestions for my entire study. I would also like to thank the COOPERATIVE
BANK team for extending their valuable time and cooperation.
Namita Bala
Roll No.: 1504630.

TABLE OF CONTENTSTABLE OF
CONTENTS

Sr.No.
1.

Particulars
CHAPTER-I: INTRODUCTION TO STUDY

Introduction
2.

CHAPTER-II: ABOUT BAMK

Definition of bank
Types of cooperative bank
Classification of banks
Digitalization in cooperative bank
Easy banking
Plastic money
Credit card market
Loans
Money transfer

3.

. CHAPTER-III: REVIEW OF LITERATURE

CHAPTER-IV: RESEARCH
METHODOLOGY
Sources of Data Collection
Objectives of the Study
Limitations of the Study

5.

CHAPTER-V: DATA ANALYSIS AND ITS

INTERPRETATION

Page No

6.
7.
8.

CHAPTER-VI : FINDINGS AND

SUGGESTIONS
CHAPTER-VII: CONCLUSION
CHAPTER-VII: BIBLIOGRAPHY
ANNEXURE
Questionnaire

INTRODUCTION TO
THE STUDY

INTRODUCTION
Banking Industry which is basically my concern industry around which my project
has to be revolved is really a very complex industry. And to work for this was really
a complex and hectic task and few times I felt so frustrated that I thought to left the
project and go for any new industry and new project. Challenges which I faced while
doing this project were following-

Target customers and respondents were too busy persons that to get their
time and view for specific questions was very difficult.

Sensitivity of the industry was also a very frequent factor which was very
important to measure correctly.

Area covered for the project while doing job also was very large and it was
very difficult to correlate two different customers/respondents views in a one.

So above challenges some time forced me to leave the project but any how I did
my project in all circumstances. Basically in this project I analyzed that-

ABOUT BANK

 DEFINATION:
A Co-operative bank, as its name indicates is an
institution
consisting of a number of individuals who join together to pool
their surplus
savings for the purpose of eliminating the profits of the bankers or
money
lenders with a view to distributing the same amongst the
depositors and
borrowers.

The Co-operative Banks Act, of 2007 (the Act) defines a cooperative

bank as a co-operative registered as a co-operative bank in terms
of the Act
whose members
1. are of similar occupation or profession or who are employed by
a
common employer or who are employed within the same business
district; or
2. have common membership in an association or organisation,
including a business, religious, social, co-operative, labour or
educational
group; or 3. have common membership in an association or
organisation,
including a business, religious, social, co-operative, labour or
educational group; or
4. Reside within the same defined community or geographical
area.

Type of cooperative banks:

CO-OPERATIVE BANK

Urban Co-operative
Banks

Rural Co-operatives

Short-term Rural

Long-term Rural

Co-operatives

Co-operatives

State Cooperative Bank

Central Cooperative Bank

Sate Co-operative
Agriculture and Rural
Development Banks

Primary
Agriculture
Credit Soc.

Primary Co-operative
Agriculture and Rural
Development Banks

CLASSIFICATION OF CO-PERATIVE BANKS:

The Co-operative banking structure in India comprises of:

1. Urban Co-operative Banks
2. Rural Co-operative

1. Urban Co-operative Banks:

Urban Co-operative Banks is also referred as Primary Cooperative
banks by the Reserve Bank of India. Among the non-agricultural
credit
societies urban co-operative banks occupy an important place.
This bank is
started in India with the object of catering to the banking and
credit
requirements of the urban middle classes.
The RBI defines Urban Co-operative banks as small sized
cooperatively organized banking units which operate in
metropolitan, urban
and semi-urban centers to cater mainly to the needs of small
borrowers, viz.
owners of small scale industrial units, retail traders, professional
and salaries
classes.
Urban Co-operative banks mobilize savings from the middle
and
lower income groups and purvey credit to small borrowers,
including weaker
sections of the society. These banks organize on a limited liability
basis,
generally extend their area of operation over a town. The main
functions of
these banks are to promote thrift by attracting deposits from
members and
non-members and to advance loans to the members. It is
registered under
Co-operatives Societies Act of the respective state Governments.
Prior to
1966, Urban Co-operative banks were exclusively under the

purview of
State Government. From March 1, 1966 certain provisions of
Banking
Regulation Act have been made applicable to these banks.
Consequently, the RBI became the regulatory an supervisory
authority of Urban Co-operative
Banks for their related operations. Managerial aspects of such
banks
continue to remain with State Governments under the respective
Cooperative Societies Act. These banks with multi-presence are
regulated by
the Central Governments and registered under Multi-State Cooperative
Societies Act. The RBI extends refinance to Urban Co-operative
Banks at
bank ate against their advances to tiny and cottage industrial
units. These
banks grants sizeable loans and advances under priority sector
for lending to
small business enterprises, retail trade, road and water transport
operators
and professional and self-employed persons. Urban Co-operative
banks are
mostly located in towns and cities and cater to the credit
requirement of the
urban clientele.

The objectives and functions of the Urban Cooperative banks:

Primarily, to raise funds for lending money to its members.
To attract deposits from members as well as non-members.
To encourage thrift, self-help ad mutual aid among members.
To draw, make, accept, discount, buy, sell, collect and deal in
bills of
exchange, drafts, certificates and other securities.
To provide safe-deposit vaults.

 Area of Operation :
The area of operation of these banks are usually restricted by its
byelaws to a municipal area or a town. In some occasions it
exceeds this
limit. The study group on Credit Co-operatives in Non-Agricultural
Sectors
has recommended that normally, it would be advisable for an
urban cooperative bank to restrict its area of operation to the
municipality or the
taluka town where it operates.

2. Rural Co-operatives:

Rural Cooperative Banking

plays an important role in meeting the growing credit needs of
rural population of India. It provides institutional credit to the
agricultural and rural sector. The inadequacy of rural credit
engaged the attention of RBI and Government throughout the
1950s and 1960s. One important feature of providing agriculture
credit in India has been the existence of a widespread network of
rural financial institutions. The rural credit structure consists of
many types of financial institutions as large scale branch
expansion was undertaken to create a strong institution based in
rural area. It has served as an important instrument of credit
delivery in rural and agricultural areas. The separate structure of
rural Cooperative sector for long-term and short-term loans has
enabled these institutions to develop a specialized institution for
rural credit delivery. The volume of credit flowing through these
institution has increased. The Rural Co-operative structure has
traditionally been bifurcated into two parallel wings, i.e.
I. Short-term Rural Co-operatives,
II. Long-term Rural Co-operatives
There is a larger network of co-operative banks in the rural
sector, consisting of 29 State Co-operative Banks and 367 District
Central Cooperative Banks, with 13,025 branches. In addition,
there are 92,000 Primary Agricultural Co-operative Credit
Societies , 19 State Land Development Banks and 745 Primary
Land Development Banks, along with 1,847 branches, which are

not strictly banks as they are not covered under the Banking
Regulation Act, 1949. The RBI Governor's proposals should,
therefore, encompass the entire Co-operative banking system.

1.Short-term Rural Co-operatives:

The short-term
rural co-operatives provide crop and other working capital loans
to farmers and rural artisans primarily for short-term purpose.
These institutions have federal three-tier structure. At the Apex of
the system is a State Co-operative bank in each state. At the
middle (or district) level, there are Central Co-operative Banks
also known as District Co-operative banks. At the lowest (or
village) level, are the Primary Agricultural Credit Societies.
i. State Co-operative Banks: The State Co-operative
Banks receive current and fixed deposits from its constituent
banks as well as savings, current and fixed deposits from the
general public and from local boards, other local authorities, etc.
Further, they receive loans from the RBI and NABARD. NABARD is
the supervisory authority for State Co-operative Banks. The state
government contributes the certain portion of their working
capital. The principal function of State Co-operative Banks is to
assist the Central Co-operative Banks and to balance excesses
and deficiencies in the resources of Central Co-operative Banks. It
also act as the balancing centre for Central Co-operative Banks
in the sense that surplus fund of some of these banks are made
available to other needy banks. It also serves the link between
RBI and the Central Co-operative Banks and Primary Agriculture
Credit Societies. But the connection between the State
Cooperative Banks and Primary Co-operative Societies is not
direct. The Central Co-operative Banks are acting as
intermediaries between the State Co-operative Banks and Primary
societies.
ii. Central Co-operative Banks: The Central Co-operative
Banks draw their funds from share capital, deposits, loans from
the State C-operative Banks and where State Banks do not exist
from the RBI, NABARD and commercial banks. NABARD is the
supervisory authority for Central Co-operative Banks. Deposits

constitute the major component of sources of funds, followed by

borrowings.
The main function of Central Co-operative Banks is to finance
the primary credit societies. In addition they carry on Commercial
banking activities like acceptance of deposits, granting of loans
and advances on the security of first class guilt-edged securities,
fixed deposit receipts, gold, bullion, goods and documents of title
to goods, collection of bills, cheques, etc., safe custody of
valuables and agency services. They are expected to attract
deposits from the general public. They also act as balancing
centres, making available access funds of one primary to another
which is in need of them.
The central co-operative banks are located at the district
headquarters or some prominent town of the district. These banks
have a few private individuals also who provide both finance and
management. The central cooperative banks have three sources
of funds,
Their own share capital and reserves
Deposits from the public and
Loans from the state co-operative banks

iii. Primary Agriculture Credit Societies: The major objective

of Primary agricultural Credit Societies is to serve the need of
weaker sections of these society. For this purpose, the people with
limited means, particularly with schedules castes and scheduled
tribes, are encouraged to become members of these societies. So,
they must function effectively as well-managed and multi-purpose
institutions mobilizing the savings of the rural people and
providing the package of services including credit, supply of
agricultural inputs and implements, consumer goods, marketing
services and technical guidance with focus on weaker sections.
Government has promoted multi-purpose societies in tribal areas
for the benefit of people living there.

II. Long-term Rural Co-operatives:

The long-

term rural co-operative provide typically medium and long-term

loans for making investments in agriculture, rural industries and,
in the recent period, housing. Generally, these co-operatives have
two tiers, i.e. State Co-operative Agriculture and Development
Banks (SCARBDs) at the state level and Primary Co-operative
Agriculture and Rural Development Banks (PCARDBs) at the
taluka or tehsil level. However, some States have a unitary
structure with the state level banks operating through their own
branches.

i. State Co-operative Agriculture and Development

Banks
(SCARBDs): The main objective of the Co-operative State
Agriculture and Rural Development bank is to finance primary
agriculture and rural development banks. The bank undertakes
the following functions to achieve the above objectives:(a) Floatation of Debentures,
(b) Receiving Deposits;
(c) Grant of loans to primary cooperative agriculture and rural
development banks for purposes approved by the National Bank
for Agricultural and Rural Development and Registrar of
Cooperative Societies;
(d) To function as the agent of any cooperative bank subject to
such;
(e) To develop, assist and coordinate the work of affiliated primary
cooperative agriculture and rural development banks.

ii. Primary Co-operative Agriculture and Rural

Development Banks (PCARDBs):
Primary Co-operative Agriculture and Rural Development Banks
are the lowest layer of long term credit co-operatives. It is
primarily dependent on the borrowings for their lending business.
They provide credit for developmental purposes like minor
irrigation, cultivation of plantation crops and for diversified
purposes like poultry, dairying and sericulture on schematic basis.

They get requisite financial assistance from the Cooperative State

Agriculture and Rural Development Bank.
In order to widen their scope of lending to compete with other
financial agencies, the primary cooperative agriculture and rural
development banks have been permitted to finance artisans,
craftmen and small scale entrepreneurs. They have also been
permitted to issue loans to small road transport operators in rural
areas for purchase of goods carriers and passenger vehicles
As a result, during 2007-08, the Primary Cooperative Agriculture
and Rural Development Banks have again started lending for the
Non-Farm Sector including Jewel Loans.

DIGITALIZATION

The Indian banking has finally worked up to the competitive

dynamics of the new Indian market and is addressing the
relevant issues to take on the multifarious challenges of
globalization. Banks that employ IT solutions are perceived to be
futuristic and proactive players capable of meeting the
multifarious requirements of the large customers base. Private
banks have been fast on the uptake and are reorienting their
strategies using the internet as a medium The Internet has
emerged as the new and challenging frontier of marketing with
the conventional physical world tenets being just as applicable
like in any other marketing medium.

DEPOSITS
The main basic working of the bank is to operate and open
maximum accounts, provide loans to the general public and earn
interest. There are mainly four types of accounts which provides
various loan facilities.

Types of Accounts
Fixed
Saving
Deposit Account

Account

Current
Account

Recurring
Deposit Account

SAVINGS ACCOUNT
To open the saving account in the bank firstly you should be
have introducers account number which already have the
account in that bank.
To open the a/c the opening amount should be according to the
terms and conditions of the bank and the same balance should be
maintained by the accountee.
If your balance decreases from the minimum amount than you
should to pay 2% on the balance.
If you want cheque facility then you should have minimum 500/in your account and Rs. 2.50 charge as per cheque.
Interest paid by the bank is @ 4% per annum on the total
balance with half yearly interest.
Interest is paid on the minimum amount from the months 10 th
day to last working day but if we deposit money after 10 th than we
doesnt get any interest on it or we withdraw money before last
day then we got the interest on remain amount.
There are some restrictions on withdraw. You can withdraw 50
times in total 6 months.

CURRENT ACCOUNT:
To open the current account in the bank firstly you should be
have introducers account number which already have the
account in that bank.
There are some conditions for the minimum balance and your
balance can go to that level of the amount.
There is no interest paid by the bank for accountee.
If you want cheque facility then you should have minimum 500/-

in your account and Rs. 2.50 charge as per cheque.

Accountee has Cheque collection facility.
Accountee has overdraft facility
There is no limit for money transaction
For cheque and draft there is service charge which does the
accountee pay ?

FIXED DEPOSIT:
You can deposit the money as a fixed amount for a specific time
period.
The interest paid by the bank is depending upon the period of
the deposit.
There is no withdrawing facility.
Upto 75% amount you can withdraw the money but as a loan
(but with 2% interest depending on the rate of deposit)

RECURRING DEPOSIT :
You can deposit the fixed money per month or in any time
period.
Same facility as in fixed deposit.
The interest paid by the bank is depending upon the period of
the deposit.
There is no withdrawing facility.

EASY BANKING
This section is fully dedicated to the Tech Banking. A decade
before, it was tough to belief that banking sector will be at a
finger tip. Now its possible. A mobile hand set with a connection is
the only instrument needed to make a gateway to your banking

transaction, the latest innovation of technology. Now a days

coopertative banks also using the new technologies. Apart from
the Mobile Banking, including of SMS Banking, Net Banking and
ATMs are the major steps taken by the banks in India towards
modernisation. With all these devises and systems, there is a
complete freedom to experience. Check your account, transfer
your fund, make payments and what more, do anything of
everything what has been followed in physical banking since
ages. But this time no standing for hours in front of cash counter
and no time boundation in withdrawing your own money.

Automated Teller Machine (ATM)

The first bank to introduce the ATM concept in India was the
Hongkong and Shanghai Banking Corporation (HSBC). It was in
the year 1987.

Mobile Banking In Co-operative

Bank
"The account that travels with you". This is needed in t oday's fast
business environment with unending deadlines for fulfillment and
loads of appointments to meed and meetings to attend. With
mobile banking facilities, one can bank from anywhere, at
anytime and in any condition or anyhow. The system is either
through SMS or through WAP. (Check out for SMS Banking under
different head) Mobile Banking is the hottest area of development
in the banking sector and is expected to replace the credit/debit
card system in future. In past two years, mobile banking users has
increased three times if we compare the use of either debit card
or credit card. Moveover 85-90% mobile users do not own credit
cards. Mobile banking uses the same infrastructure like the ATM
solution. But it is extremely easy and inexpensive to implement. It
reduces the cost of operation for bankers in comparison to the
use of ATMs. Using compact HTML and WAP technologies, the
following operations can be conducted through advanced mobile
phones which can is further viewed on channels such as the
Internet via the Channel Manager.
Bill payments
Fund transfers
Check balances
Any many more which is also available in SMS Banking

In countries like Korea, two SIM Card is used in mobile phones.

One for the
telephonic purpose and the other for banking. Bank account data
is encrypted on a smart-card chip.

SMS Banking
Businesses are in move. So is to be your money. You may have to
thank the banks which are providing banking at the send- of-yoursms. The technology is at its highest level to move your money
while you are on the move. If you are having non-WAP enabled
mobile handset, you can use the facility of SMS services. The
following operations can be easily used by the service provider:
Balance enquiry
Last three transactions
Cheque payment status
Cheque book request
Statement request
Demat - Free Balance Holding
Demat - Last two Transactions
Bill Payment

The SMS facility brings peace of mind to customers and opens

doors to many more technological possibilities and innovative
services. It is very similar to how an ATM works.
To use ATM, a card is necessary and to use SMS service, a
mobile phone is needed. In both the cases, secret number is
necessary to access. SMS banking is also very much safe. First,
one authenticates the mobile number with the authentications
key. Second, the customer uses secret Mobile Personal
Iddentification Number (MPIN).
A new concept has been developed by Bank of Punjab Ltd. They
call it "Mobile Wallet". With the support of this technology, a

customer can make payment and receive payment of account of

buy/sell (merchants) through SMS.
In this system, a buyer sends a message for buying and the
bank in return
sends a message confirming the purchase both to the merchant
as well as to
the buyer. Debit card number is the key field which is used for the
authenticity of the customer.

Net Banking
Net Banking is conducting ones banking or
bank account online through a computer and a
net connection. The system is updated
immediately after every transaction
automatically. In other words it is said that it
is updated 'on-line, real time'. Through netbanking one can check
the status
of his/her account, place queries and also can be facilitated with a
wide range of transactions simultaneously. In India, the regulatory
body has not yet sanctioned virtual bank, in abroad there are
banks like EGG Bank or NET Bank, which only have a virtual
presence without any physical branches. Net Banking has three
basic features.
They are as follows:
The banks offer only relevant informations about their products
and services to the mass.
Few banks provide interaction facility between the banks and its
customers.
Banks are coming up
with arrangements of utility payments, like telephone bills,
electricity bills, etc.

Services provided by Net Banking

Check Balance
See Statement
Inquire about cheque status
Ask for a Statement
Ask for a Cheque Book
Inquire about Fixed Deposit
Inquire about TDS details
See Demat Account
Update profile

PLASTIC MONEY

Credit Card
Credit cards in India is gaining ground. A number of
banks in India are encouraging people to use credit card. The
concept of credit card was used in 1950 with the launch of
charge cards in USA by Diners Club and American Express.
Credit card however became more popular with use of
magnetic strip in 1970. Credit card in India became popular
with the introduction of foreign banks

Precautions taken after receiving credit card

To Avoid:
Bending the Card.
Exposure to electronic devices
and gadgets.
Direct exposure to sunlight.
Be cautious about disclosing
your account number over the
phone unless you know you're
dealing with a reputable
company.
Never put your account number
on the outside of an envelope or
on a postcard.
Draw a line through blank spaces on charge or debit slips
above the total so the amount cannot be changed.
Don't sign a blank charge or debit slip.
Tear up carbons and save your receipts to check against
your monthly statements.
Cut up old cards - cutting through the account number
before disposing of them.
Open monthly statements promptly and compare them with
your receipts. Report mistakes or discrepancies as soon as
possible to the special address listed on your statement for
inquiries. Under the FCBA (credit cards) and the EFTA (ATM
or debit cards), the card issuer must investigate errors
reported to them within 60 days of the date your statement
was mailed to you.
Keep a record - in a
safe place separate from your cards - of your account
numbers, expiration dates, and the telephone numbers of
each card issuer so you can report a loss quickly.

Carry only those card that you anticipate you'll need.

To Do:
Please sign on the signature panel on the reverse of the
Card immediately with a non-erasable ball-point pen

(preferably in black ink). This will ensure that the benefits of

membership are yours and yours alone.
Keep the Card in a prominent place in your wallet. You will
notice if it is missing.

CREDIT CARD MARKET

MasterCard
MasterCard is a product of MasterCard International and
along with VISA
are distributed by financial institutions around the world.
Cardholders
borrow money against a line of credit and pay it back with
interest if the
balance is carried over from month to month. Its products
are issued by
23,000 financial institutions in 220 countries and territories.
In 1998, it had
almost 700 million cards in circulation, whose users spent
$650 billion in
more than 16.2 million locations.

VISA Card

VISA cards is a product of VISA USA and along with

MasterCard is
distributed by financial institutions around the world. A VISA
cardholder
borrows money against a credit line and repays the money
with interest if the
balance is carried over from month to month in a revolving
line of credit.
Nearly 600 million cards carry one of the VISA brands and
more than 14
million locations accept VISA cards.

The following are some of the plus features of credit

card :
Hotel discounts
Travel fare discounts
Free global calling card
Lost baggage insurance
Accident insurance
Insurance on goods purchased
Waiver of payment in case of accidental death
Household insurance

LOANS
Banks in India with the way of development have become
easy to apply in
loan market. The following loans are given by almost all the
banks in the
country:
Personal Loan
Car Loan or Auto Loan
Loan against Shares
Home Loan
Education Loan or Student Loan

MONEY TRANSFER
Beside lending and depositing money, banks also carry money
from one corner of the globe to another. This act of banks is
known as transfer of money. This activity is termed as remittance
business. Banks generally issue Demand Drafts, Banker's
Cheques, Money Orders or other such instruments for transferring
the money. This is a type of Telegraphic Transfer or Tele Cash
Orders. It has been only a couple of years that banks have
jumped into the money transfer businessess in India. The
international money transfer market grew 9.3% from 2003 to
2004 i.e. from US$213 bn. to US$233 bn. in 2004. Economists say
that the market of money transfer will further grow at a
cumulative 10.1% average growth rate through 2008.
With the use of high technology and varieties of product it seems
that "Free" money transfers will become commonplace. We will
see more bundling of tailored money services by banks and nontraditional entrants that will include "free" money transfers. Many
banks will even use money transfer services as loss-leaders
inorder to generate account openings and cross-sell opportunities.
The price evolution of money transfer products for banks will be
similar to that of consumer bill pay-the product is worth giving
away as an account acquisition tool to win overall market share
and establish banking relationships.
ATM money transfer card products have had terrible bank
adoption rates since being introduced in the last three to four
years. Remittees who are highly educated and have been already
been exposed to ATM technology in receiving countries tend to
have an interest in this product. Money transfer to India is one of
the most important part played by the banks. This service provide
peace of mind to either the NRIs or to the visitors to India. Many
Indian banks have ATM'S (automatic teller machine), enable to

draw foreign currency in India. By 2007, we will see a good

percent of all foreign-born households doing some level of online
banking. First-mover banks will start having a window of
opportunity to include online transfer functionality within the next
couple of years, which currently frequents traditional money
transmitters such as Western Union. There is a terrific opportunity
for banks and non-banks to offer more robust global interinstitutional funds transfer services online. More than half of
Western Union's customers today are already banked, and More
than half of Western Union's customers today are already banked,
and most do not have an alternative product marketed by their
bank that is painless, quick, and cost-effective. That will change
as banks offer transfer services through their online channel.

Money Transfer to India

Apart from banks few financial institutions and online portals
gives services of money transfer to India. Some of them are as
under:

Western Union Money Transfer

Union Money Transfer

IKobo Money Transfer

Cash2india.com

Remit2india

Samachar Money Transfer

Wells Fergo International Money Transfer

Travellers Express

Money Gram Internationa

REVIEW OF
LITERATURE

RESEARCH METHOD

RESEARCH METHODOLOGY
Research is an art of scientific investigation. In other word
research is a
scientific and systematic search for pertinent information on a
specific topic.
The logic behind taking research methodology into consideration
is that one can
have knowledge about the method and
procedure adopted for achievement of objectives of the project.
With the adoption of this others can evaluate the results also. Its
main aim is to keep the researchers on the right track.

DATA SOURCE:
Primary Data:
The primary data was collected by means of a survey. Questionnaires were prepared
and customers of the banks at two branches were approached to fill up the
questionnaires. The questionnaire contains 20 questions which reflect on the type
and quality of digitalization in the bank to the customers. The response of the
customer and the is recorded on a grade scale of strongly disagree, disagree,
uncertain, agree and strongly agree for each question. The filled up information was
later analyzed to obtain the required interpretation and the findings.

Secondary Data:
In order to have a proper understanding of the digitalization in the bank a depth
study was done from the various sources such as books, a lot of data is also
collected from the official websites of the banks and the articles from various search
engines like Google, yahoo search and answers.com.

RESEARCH DESIGN:
The research design is exploratory till identification of digitalization parameters.
Later it becomes descriptive when it comes to evaluating customer perception of
digitalization of the banks. Descriptive research, also known as statistical
research, describes data and characteristics about the population or phenomenon
being studied. Descriptive research answers the questions who, what, where, when
and how. Although the data description is factual, accurate and systematic, the
research cannot describe what caused a situation. Thus, descriptive research cannot
be used to create a causal relationship, where one variable affects another. In other

words, descriptive research can be said to have a low requirement for internal
validity.
The description is used for frequencies, averages and other statistical calculations.
Often the best approach, prior to writing descriptive research, is to conduct a survey
investigation. Qualitative research often has the aim of description and researchers
may follow-up with examinations of why the observations exist and what the
implications of the findings are.

RESEARCH SAMPLE:
SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take
sample from the universe to know about its characteristics.

SAMPLE SIZE:
The work is a case of o-operative Bank, one of the largest bank of Indian banking
industry together representing over 25 per cent of the market share of Indian
banking space. The survey was conducted in the city of Nurmehal with branch of
Co-operative Bank, with 50 customers as respondent.

DATA COLLECTION TOOL

Data was collected through a structured questionnaire. Likert scale technique is
used. The format of a typical five-level Likert item is:
1. Strongly disagree
2. Disagree
3. Neither agree nor disagree
4. Agree
5. Strongly agree

RESEARCH LIMITATIONS

The study is only for the HDFC Bank confined to a particular location
and a very small sample of respondents. Hence the findings cannot be
treated as representative of the entire banking industry.

The study can also not be generalized for public and private sector banks of
the country.
Respondents may give biased answers for the required data. Some of the
respondents did not like to respond.
Respondents tried to escape some statements by simply answering neither
agree nor
disagree to most of the statements. This was one of the most important
limitation faced, as it was difficult to analyse and come at a right conclusion.
In our study we have included 50 customers of bank because of time limit.

DATA ANALYSIS AND

INTERPRETATION
1. Approximately how many people visit your bank web site per day?

2. How long has your bank been providing Internet Banking?

3. How frequently do you update your website?

FINDINGS & SUGGESTIONS

FINDINGS OF THE STUDY

Number of problems faced by people is more in public sector
banks
The banks are having state of
infrastructure as most of the Respondents comes in satisfied but
Bank could lay more emphasis on improving the Infrastructure.
The most of the respondents were happy with the ATM service
provided by bank but however it could me more improvised.
Majority of the respondent whether in public sector banks or in
private sector banks have savings account with banks.
People are more satisfied from the private banks due to the
better services provided by them in terms of speedy transactions,
fully computerized facilities, more working hours (in case of ICICI
Bank, the number of working hours are 12), good Investment
Advisory services, efficient and co-operative staff, better
approach to Customer Relationship Management.
In private banks proper promotional activities should be taken
up so as to make the population aware of the services provided
by the banks even in rural areas.

RECOMMENDATIONS
Banks should obey the RBI norms and provide facilities as per
the norms, which are not being followed by the banks. While the
customer must be given the prompt services and the bank officer
should not have any fear on mind to provide the facilities as per
RBI norms to the units going sick.
Banks should increase the interest rate of savings account.
Banks should provide loans at the lower interest rates and
education loans should be given with ease without much
documentation. All the banks must provide loans against shares.
Fair dealing with the customers. More contributions from the
employees of the bank. The staff should be co-operative, friendly
and must be capable of understanding the problems of the
customers.
Internet Banking facility must be made available in all the
banks.
Prompt dealing with permanent customers and speedy
transactions
Each section of every bank should be computerized even in
rural areas also.
Door to door service especially for the senior citizens of the
country.

Banking sector is improving by big leaps but still it needs

to be improved.
Proper and efficient relationship staffs having knowledge for one
stop
banking, customer friendly atmosphere, and better rate of
interest are need of
the hour. The concept of privatization has overall improved the
services in
all the banks. Home banking will be order of the day.

CONCLUSION
The customers now days are not only exposed of what type of
service is
being provided by banks in India but in the world as a whole. They
expect
much more than what is actually being provided. So the new
coming
banking sector has to provide and cater to all the needs of the
customers
otherwise it is difficult to survive in the competition coming up.
They not only expect the safety of money but also best ways to

invest that
money which need needs to be fulfilled. Banks need to have a
better outlook
towards to actually what customers are requiring. Entry of the
private sector
banks have made the competition more tough. If a bank is not
functioning
properly it is being merged into some other bank or being closed.
So it is
difficult to face these types of conditions. Here a simple
philosophy can
work that customers are God and we need to follow this to survive
and serve better.
The banking sector is poised for explosive growth. In this,
scenario, it is
imperative that banks adopt technology at an aggressive pace, if
they wish to
remain competitive. Mani mamallan makes a case for banks to
outsource
their technology infrastructure requirements, thus enabling early
adoption
and increased efficiencies.
In this prevailing scenario, a number of banks have adopted a
new
deployment strategy of infrastructure outsourcing, to lower the
cost of
service channels. As a result, other banks too will need to align
their
technologies with their reinvented business models. The required
changes at
both the business and technology levels are enormous. In a highly
competitive banking market, early adopters are profiting from
increased
efficiencies.
To actually face the growing competition, following are some of
the ways
which can be adopted:

1. More touch points and more consumers.

2. Share the existing networks and services.
3. Move the existing paper customers to plastic customers.
4. Innovate consumer-specific banking products as against
bankingspecific consumer services.
5. Shift the focus from Customer Relationship Management (CRM)
to
Customer Managed Relationship (CMR).
6. Outsourcing.

BIBLIOGRAPHY

ANNEXURE

QUESTIONNAIRE
We are conducting a study on Technology in Banking-An Impact study in the operations of
coprative bank
new technological advancements available in banking services. We would appreciate your
responses to
some questions about this. There are no right or wrong answers. Please tell us what you really
think.

Personal Data:

1. Name:
2. Bank & Branch:
3. Age
A. Less than 25 B. 26 to 30 C. 31 to 40 D. 41 to 50 E. Above 50
4. Gender
A. Male B. Female
5. Marital Status
A. Married B. Un Married C. Widowed D. Divorced
6. Annual Income (lacks)
A. Less than 1 B.1 to 2 C. 2 to 3 D. 3 to 4 E. 4 and above
7. Educational Qualifications
A. Intermediate B. Bachelor Degree C. Master Degree D. Professional
8. Category of job
A Manager B. Executives C. Officers D. Clerks E. Others ( Please specify)________
9. Years of experience
A. Less than 5 years B. 6 to 10 years C. 11 to 15 years D. Above 16years

I.

Transactions Data:

Q 1. Approximately how many people visit your bank web site per day?
A. Less than 1000 B. 1000 to 5000 C. Above 5000 D. Others (Please specify)____________
Q 2. How long has your bank been providing Internet Banking?
A. Less than a year B. 1 to 5 years C. More than 5 years D. ________________
Q 3. How frequently do you update your website?
A. Daily B. Weekly C. Monthly D. More than once in a month for every update
Q 4. What was the reason behind introduction of internet banking?
A. Because of competition from foreign banks B. Man power shortage
C. Qualitative customer service D. Faster transactions & Time saving
E. Any other (Please specify) _____________________

Q5. How do you make your potential customer aware of your location on the Net?
A. Advertising on the Net B. News media
C. Banks publications D. Any other (Please specify)_____________________
Q6. Relative importance of factors determining provision of electronic banking
A. Vision of the future
B. Prediction of customer acceptance
C Organizational culture of innovation D. Market share or strength of organization
E. ______________________________
Responses regarding some comparative aspects
Tick ( ) any number that represents your answer. 1 2 3
Q 7. Comparative aspects between Traditional banks E banks Both
A. More facilities to employees
B. Employees of which type of banks are more satisfied from job
434
123
Traditional banks E banks Both
C. Salary package is comparatively better in
D. Top management involvement branch level is
comparatively more in
E. Working hours are comparatively more in
F. Yearly customers growth is comparatively more in
Q8. Differentiating strategies between

A. More information technology

B. Providing better quality of service
C. Innovative products and services
D. More labor intensive techniques
E. Recruiting young employees
F. Expanding branch network
G. Pitching into mergers and acquisitions
Q9. The factors that contribute to better services in Traditional banks E banks Both
A. Higher return in deposits
B. Overall Efficiency
C. Customer shift
D. More Profit
Traditional banks E banks
Q10. Behavioral Factor in e-banks
A. Helped in reducing work stress
B. helped in reducing chaos and
confusions
C. Helped to do routine work more
efficiently
D. Increased interest in work
E. Increased level of motivation
F. Increased level of job satisfaction
11Training and Development Factor in e-banks
A. Effective Training
B. Enhanced technical skills
C. Increased effectiveness at job
D. Organized training programs
Increased confidence levels
435

Strongly Agree Neutral Disagree Strongly

Agree Disagree
Q12. Knowledge Management Factor in e-banks
A. Empowered with better access to information
B. Empowered with more control over work
C. Enhanced creativity

D. Empowered to solve problems

E. Enhanced capacity to contribute in
research & development activities
F. Increased involvement in
decision making
G. Magnified abilities to think and articulate thoughts
Q13. Employee Benefits with Electronic banking Rank (12345)
A. Minimizes the cost of transactions [ ]
B. Saves time [ ]
C. Minimize inconvenience [ ]
D. Provided up to date information [ ]
E. Facilitates quick responses [ ]
F. Improves service quality [ ]
G. Minimizes the risk of carrying cash [ ]
12345
Q14. Difficulties Faced by the Employees Very Some A Very Not to Work with e-channels Much
What Little Little at all
A. lack of knowledge regarding how to
use/ operate
B. lack of trust
C. Increasing expectations of customers
D. Problem of Security
E. Resistance to change
F. lack of proper training
G. Technology up gradation
H. Strain, due to e-banking as
compared to manual banking
Q 15 Number of complaints ( per month) from E Bank customers as compared to customers of
traditional Banks Nos Complaints 1 - 5 More than 5
A. Delay in banking functions from customers view point
B. High cost of service chargers
C. Higher amount of minimum balance maintained in their accounts
D. Problems regarding use of ATMs or online banking technologies
E. Lack of attention or improper behavior of bank employees
F. Wrong entries in their accounts
436
12345

Q16. How satisfied are you with Working through e-channels?

A. Highly Satisfied B. Satisfied C. Neutral D. Dissatisfied E. Highly Dissatisfied
Q17. The technology I work with (Please rank (1234) these in order of priority) Rank
A. Enables me to do my job effectively [ ]
B. Is user friendly [ ]
C. Enables me to contact customers easily when I need to [ ]
D. Is flexible enough for me to make adjustments according to customer needs [ ]